With effect from the 1st day of April, 2006 in case a person fails to comply with the notice issued u/s 115WD(2) or u/s 115WE(2) he will be liable to a penalty of Rs. 10,000 for each such failure.
In case any person has concealed the particulars of the fringe benefits or furnished inaccurate particulars of such fringe benefits he shall be liable to a penalty of an amount. equal to tax so evaded but maximum up to 300% of tax so evaded. [Section 271(1)(d)]
A new subsection is being inserted to provide for that any reference in this section to the income shall be construed as a reference to the income or fringe benefits, as the case may be, and the provisions of this section shall, as far as may be, apply in relation to any assessment in respect of fringe benefits also. [Section 271(6)]